Mobile banking is an increasingly common way of making cashless payments. The technology, which is app based, provides advantages to consumers and to providers. From the provider’s perspective, mobile banking lowers the cost of handling transactions by reducing the need for customers to visit a bank branch for non-cash withdrawal and deposit transactions. One such provider is Varo Money, which has recently expanded its integrated services.
As well as announcing the new extension, Varo Money have also made improvements to their established app, adding features like check deposit together with a new Varo Savings account. The new savings account will pay a higher level of interest, at 0.25 percent, which is better when compared with the derisory 0.01 percent interest rate paid by most other savings accounts. The Varo service creates an integrated service covering automated deposit, budgeting, savings, and lending products.
In a statement, John Vars, who is the Chief Product Officer for the San Francisco based fintech explains about the new Varo Forecast app, noting the software “is a critical step in the ‘financial health lifecycle,’ which ensures that Varo customers can plan better, spend more wisely, and save more, making better choices aligned with their goals.”
The technologist adds: “Our highest priority is to improve our customers’ financial situations and, ultimately, their quality of life. The new Varo Forecast and Varo Savings products help address two critical elements of that journey: managing cash flow and building savings.”
By introducing the new app, Varo are presenting a ‘one-stop-shop’ for savvy consumers, comfortable with mobile banking technology. A key selling point is the new Varo Forecast algorithm, which is predictive and can personalize responses for the user. The Forecast app has been built to provide insight to help answer the common types of financial questions that consumers often need answered. Not least is the question: “how much money can I spend this month?” A second question that comes up “am I on track to meet my goals?”
This works on the basis of the Varo Forecast app assessing banking data for each user, looking at income, bills, and rent or mortgage, to arrive at the optimal calculations and information for consumers. As a summary, the app can provide a 30-day view of cash flow health and supply recommended actions to manage finances.
Going forwards the company aims to undertake further testing and iterative on in relation to personalized savings.
